Predictions for capital gains tax at next budget

MDMD

Old_Lifer said:

It's only  3 weeks to the Budget (3rd March) so not long to wait and then we will know what may or may not happen.

The Treasury will probably leak some of their plans out anyway, as they do most years. 

Thrugelmir

MDMD said:

Old_Lifer said:

It's only  3 weeks to the Budget (3rd March) so not long to wait and then we will know what may or may not happen.

The Treasury will probably leak some of their plans out anyway, as they do most years. 

Be an inside job from someone either receiving a back hander or that just wants to make political waves. 

happybagger

dunstonh said:
Maybe by taxing the anti lockdown fans that keep breaching lockdown and prolonging the lockdowns.

Already got that system in place, it's called Fixed Penalty Notices.
Time they started enforcing them on all the over-80s breaking these regs then, given more than average age of death of someone 'with covid' is 82. Might start to make a dent into the £400bn debt we're already in

MaxiRobriguez

Thrugelmir said:

Tax revenues need to be raised.  Those fortunate enough to have made capital gains from rising asset prices are unlikely to have been materially impacted financially by the pandemic. Now is a good time to reform. As difficult to argue against. 

I agree.

But history suggests CGT likely to remain untouched, poor folk will get a few breadcrumbs with the 0% rate tax band going up a few hundred quid which allows the government to pay off the rona debt by slashing spending on public services.

zagfles

MaxiRobriguez said:

Thrugelmir said:

Tax revenues need to be raised.  Those fortunate enough to have made capital gains from rising asset prices are unlikely to have been materially impacted financially by the pandemic. Now is a good time to reform. As difficult to argue against. 

I agree.

But history suggests CGT likely to remain untouched, poor folk will get a few breadcrumbs with the 0% rate tax band going up a few hundred quid which allows the government to pay off the rona debt by slashing spending on public services.

History of what? Going back to pre 2008 when CGT was taxed as savings income would be a start, perhaps with no allowance or a small one, but allowing the 0% savings rate to be used to protect those on low incomes.

Income tax personal allowance has risen massively over the last 10 years.

MaxiRobriguez

zagfles said:

MaxiRobriguez said:

Thrugelmir said:

Tax revenues need to be raised.  Those fortunate enough to have made capital gains from rising asset prices are unlikely to have been materially impacted financially by the pandemic. Now is a good time to reform. As difficult to argue against. 

I agree.

But history suggests CGT likely to remain untouched, poor folk will get a few breadcrumbs with the 0% rate tax band going up a few hundred quid which allows the government to pay off the rona debt by slashing spending on public services.

History of what? Going back to pre 2008 when CGT was taxed as savings income would be a start, perhaps with no allowance or a small one, but allowing the 0% savings rate to be used to protect those on low incomes.

Income tax personal allowance has risen massively over the last 10 years.

I suppose I should give credit where credit is due, the personal tax allowance has been one of a small number of good things our government has done for poorer folk in the last ten years. 

zagfles

MaxiRobriguez said:

zagfles said:

MaxiRobriguez said:

Thrugelmir said:

Tax revenues need to be raised.  Those fortunate enough to have made capital gains from rising asset prices are unlikely to have been materially impacted financially by the pandemic. Now is a good time to reform. As difficult to argue against. 

I agree.

But history suggests CGT likely to remain untouched, poor folk will get a few breadcrumbs with the 0% rate tax band going up a few hundred quid which allows the government to pay off the rona debt by slashing spending on public services.

History of what? Going back to pre 2008 when CGT was taxed as savings income would be a start, perhaps with no allowance or a small one, but allowing the 0% savings rate to be used to protect those on low incomes.

Income tax personal allowance has risen massively over the last 10 years.

I suppose I should give credit where credit is due, the personal tax allowance has been one of a small number of good things our government has done for poorer folk in the last ten years. 

Well, there's the minimum wage which keeps going up much faster than inflation, now around the average wage of half of Europe, around £18k full time. And still one of the most generous means tested benefits systems in the world for families, even after the cuts. And "school meals" in the school holidays! Even Labour rejected that idea in their "war on child poverty"!

But maybe best not to turn this into another "What have the Romans ever done for us" threads

Back OT - why not simplify savings tax, say a combined £2500 savings/dividends/CGT allowance, anything over that taxed at income tax rates, but allowing the £5000 0% savings band to be used by CGT and dividends as well as interest. This would also raise the tax on dividends and crack down on those who manipuate their income, eg one man band ltd companies who pay themselves mainly in dividends to avoid NI.

Gary1984

Not quite as simple as that though as dividends are paid out of company profits that have already had corporation tax applied. You'd have an effective Higher Rate Tax of about 51% on company profits which isn't the sort of thing a government that wants to encourage startups would do.

You already have IR35 which takes care of disguised employment. 

No reason not to increase CGT on unearned income. Remove the residential home exemption as well (it could be charged at a lower rate). 

Thrugelmir

MaxiRobriguez said:

zagfles said:

MaxiRobriguez said:

Thrugelmir said:

Tax revenues need to be raised.  Those fortunate enough to have made capital gains from rising asset prices are unlikely to have been materially impacted financially by the pandemic. Now is a good time to reform. As difficult to argue against. 

I agree.

But history suggests CGT likely to remain untouched, poor folk will get a few breadcrumbs with the 0% rate tax band going up a few hundred quid which allows the government to pay off the rona debt by slashing spending on public services.

History of what? Going back to pre 2008 when CGT was taxed as savings income would be a start, perhaps with no allowance or a small one, but allowing the 0% savings rate to be used to protect those on low incomes.

Income tax personal allowance has risen massively over the last 10 years.

I suppose I should give credit where credit is due, the personal tax allowance has been one of a small number of good things our government has done for poorer folk in the last ten years. 

Above inflation increases in the minimum wage. 

zagfles

Gary1984 said:

Not quite as simple as that though as dividends are paid out of company profits that have already had corporation tax applied. You'd have an effective Higher Rate Tax of about 51% on company profits which isn't the sort of thing a government that wants to encourage startups would do.

Not on retained profits, ie profits used to expand the business, only on distributed profits. And it would swing the incentive back towards paying salary rather than dividends.

No reason not to increase CGT on unearned income. Remove the residential home exemption as well (it could be charged at a lower rate). 

Or allow roll forwards for main residence.